Tuesday, October 23, 2007

Capitalism Versus Socialism

Capitalism: An economic system based upon supply and demand and competition.
Socialism: An economic system based upon shared benefits

Why Capitalism Is Good: The government doesn't tell you what to do with your money and in what capacity you must work in. Also, work hard pays off. You can climb your way up the "social" ladder if you are able to create new ideas and have enough drive. As consumers, prices are kept low because of competition.

Why Capitalism Is Not So Good: If business is "let be" aka "laissez-faire" then the resulting situation is a monopoly which have large corporations dominating smaller ones. Also, materialism tends to result from capitalism. Your life is measured by how many material items you possess.

Bettering Capitalism: Government enforced rules that prohibit businesses from making shoddy products, prohibit exemptions regarding overtime hours, and prohibit outsourcing, which drives down wages.

Why Socialism Is Good: Socialist-based systems such as Universal Health Care and other public services will be under the control of the government. If administered correctly, socialism ends homelessness and unemployment.

Why Socialism Is Not So Good: You don't exactly have to work. You are getting things handed to you by the government. The state controls means of production which essentially limits individual thoughts and ideas in an entrepreneurial sense.

Bettering Socialism: Instead of completely eliminating private businesses, the government would be better off more than partially regulating business affairs. A combination of > 50% government sponsored social programs and < style="font-weight: bold;">

1 comment:

  1. This is exactly what we are learning about in history. That's why the Anti-Trust unions and laws against monopolies were formed: to make sure that capitalism doesnt get out of hand. Socialism is basically a diluted communism, which, as we can tell, is only good in theory, because of the honesty of everyone. This is actually going to be a subject in a few years, I am guessing, with the AT&T company.

    AT&T + Cingular = one company
    Sprint + Nextel = one company

    Say Verizon joins one of the these companies, and T-Mobile joins one. Then we have a monopoly situation on our hands. Thats when people step in.


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